Bellarina Sdn Bhd manufactures a product called Beerry. The company applies standardcosting system for cost controlling. The
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Question:
Bellarina Sdn Bhd manufactures a product called Beerry. The company applies standardcosting system for cost controlling. The budgeted data and actual data for the quarter ended 30June 2019 are given below.
Budgeted data for the quarter ended 30 June 2019 | |
Production and sales units | 40,000 |
Direct material A | Purchased and used: 200,000 kg at a cost of RM4.00 per kg |
Direct material B | Purchased and used: 400,000 kg at a cost of RM5.00 per kg |
Direct labours | - Paid at RM10 per hour - Estimated hours worked : 200,000 hours |
Fixed production overhead costs | RM800,000 and absorbed based on units of production |
Sales revenue | RM7,000,000 |
Actual data for the quarter ended 30 June 2019 | |
Selling price | 10% higher than standard selling price |
Production and sales units | 38,000 |
Direct material A | Purchased and used: 192,000 kg at a cost of RM4.50 per kg |
Direct material B | Purchased and used: 410,000 kg at a cost of RM4.80 per kg |
Direct labours | - Paid at RM11 per hour - Actual hours worked : 205,000 hours |
Fixed production overhead costs | RM786,000 and absorbed based on units of production |
Required:
Compute the following variances:
i. Direct material price variance (Direct material A and direct material B)
ii. Direct material usage variance (Direct material A and direct material B)
iii. Direct labour rate variance
iv. Direct labour efficiency variance
v. Fixed overhead expenditure variance
vi. Fixed overhead volume variance
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